Can cross-border trucking be the key to enhancing supply chain resilience and efficiency in the Asian region?
The pandemic and recent severe port congestion, especially in Asia, are prompting businesses and their logistics partners to find innovative ways to ensure supply chain resilience and flexibility.
For the Asian region, where road networks already connect major economic zones and continue to expand, and trade agreements like the Regional Comprehensive Economic Partnership (RCEP) accelerate economic integration between countries like China, Vietnam, and Cambodia, cross-border trucking stands as a major tool to bypass these uncertainties. As of today, intra-Asia trade accounts for 60% of the region’s exports.
However, cross-border trucking also presents its own set of specificities and challenges. Today, ASI Logistics offers comprehensive insights to make the most of cross-border trucking in the Asian region.
When to Use Cross-Border Trucking?
While cross-border trucking provides great advantages on its own, it is mostly used as part of a multimodal strategy.
By combining trucking with other modes of transport like sea, air, and rail, businesses can optimize their logistics flows by balancing cost, speed, and capacity.
The Role of Cross-Border Trucking in Asian Supply Chain Optimization
Visualization source: Symington, A. (2023, May 19). Mapped: All of the world’s roads, by continent. Visual Capitalist.
In recent years, demand for cross-border trucking has surged in Asia due to increased regional economic growth and infrastructure development.
While intra-Asia trade accounts for 60% of the region’s exports, major trade routes between China, Vietnam, Cambodia, and other Asian countries are gaining importance. Recent regional trade agreements, such as the RCEP, together with the construction of new highways and corridors, make it not only viable but also increasingly easy and profitable to rely on this freight method.
In parallel, cross-border trucking offers a level of flexibility that cannot be matched by air and sea freight. In particular, SMEs looking to expand in neighboring Asian countries should capitalize on the reduced barriers and costs offered by this transportation method.
As just-in-time logistics and resilience to external disruptions are becoming the norm, the reactivity and adaptability of cross-border trucking are key to optimizing regional supply chains.
Indeed, amid the recent supply chain disruptions, such as the pandemic or the significant Asian port congestion triggered by the Red Sea Crisis, cross-border trucking and its integration within multimodal transportation strategies have emerged as reliable alternatives in case of sea and air route blocks or delays.
Navigating the Challenges of Cross-Border Trucking
Like any other cross-border transportation, trucking presents regulatory challenges. It requires navigating different regulations, customs procedures, and legal frameworks in each country. Ensuring these steps are handled expertly is key to ensuring compliance and avoiding delays.
With 16 years of expertise in handling intra-Asian shipments, ASI Logistics specializes in streamlining these processes. From handling paperwork and ensuring compliance to working closely with local customs and end-to-end overseeing of your shipments, we guarantee smooth delivery of your cargo.
Bottlenecks and traffic congestion should also be challenges to look out for when relying on cross-border trucking. Anticipating perturbations, careful route planning, and optimization are thus paramount and should take advantage of the latest trucking route improvements that have been happening in the Asian region.
Relying on a local logistics partner who is up-to-date on recent infrastructure projects, such as highway expansions or the development of cross-border logistics hubs, and proactive in readapting their solutions, is thus essential to prevent any disruptions along the line.
In many instances, cross-border trucking can be integrated within a comprehensive and multimodal supply chain optimization strategy for manufacturing, retail, and e-commerce companies operating in Asia.
At ASI Logistics, we offer customized cross-border services catered to meet your industry that take advantage of the region’s latest developments.
Thanks to our wide array of services and local expertise—from worldwide pick-up and multimodal transportation services to customs clearance, warehousing, and distribution until last-mile delivery—we design comprehensive and optimized logistics and freight forwarding solutions.
ASI Logistics, strong of 15 years of expertise, provides you with the most adapted logistic solution to fit your needs and ensure you enjoy the benefits of smooth operations.
Thanks to our eight offices, including six conveniently located on China's east coast logistic hubs (Shanghai, Ningbo, Xiamen, Ningbo, and Hong Kong), its two branches in Ho Chi Minh City, Vietnam, and Phnom Penh, Cambodia, and its worldwide network of logistic experts, ASI Logistics accompanies you at every step of your product's journey from, to and within Asia.
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ASI Logistics, fort de 15 ans d'expertise, vous fournit la solution logistique la plus adaptée à vos besoins, pour une chaîne d'approvisionnement et des expéditions fluides.
Grâce à nos sept bureaux, dont cinq idéalement situés sur les hubs logistiques de la côte est de la Chine (Shanghai, Ningbo, Xiamen, Qingdao et Hong Kong), ainsi que nos deux branches à Ho Chi Minh Ville, au Vietnam, et Phnom Penh, au Cambodge, à l'expertise de notre société mère européenne et à notre réseau mondial d'experts logistiques, ASI Logistics vous accompagne à chaque étape du voyage de vos produits, vers, depuis et en Asie.
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